There is a HUGE difference between a company using personal data about you to target marketing to you, and company taking data (photos in this case) provided by you (or by a third party about you) and using it to market products to others.
If I see an ad about (insert product name) in my (insert Google product) stream, it is something that only I can see. If you see a picture of me (perhaps uploaded by a "friend" to a site like instagram) used to advertised products to you, then my privacy has been severely breached.
If I see an ad about (insert product name) in my (insert Google product) stream, it is something that only I can see. If you see a picture of me (perhaps uploaded by a "friend" to a site like instagram) used to advertised products to you, then my privacy has been severely breached.